The regulator of the markets Securities and Exchange Board of India (SEBI) has issued guidelines for the imposition of fines and the taking of measures in the event of non-compliance with continuous disclosure obligations by issuers of listed non-convertible securities and of commercial papers.
The notification will come into effect for the compliance due dates falling on or after February 1, 2022.
The fines imposed must be credited to the Investor Protection Fund of the relevant exchange.
The fines will continue to run until the time of rectification of the non-conformity and to the satisfaction of the recognized stock exchange concerned.
“This accumulation will be independent of any other disciplinary or coercive action initiated by recognized stock exchanges or SEBI,” he said.
The regulator has specified the amounts of fines to be collected in the event of violation of the various provisions of the “Listing obligations and disclosure requirements” standards and the measures to be taken in the event of non-compliance.
Scholarships can deviate, if necessary, but only after recording the reasons in writing.
In the event that the non-compliant entity is listed on more than one exchange, the relevant exchanges should take uniform action in consultation with each other.
The regulator said each exchange will review the compliance status of entities that have listed their non-convertible securities and commercial paper and issue notices to non-compliant entities within 30 days of the due date of the prescribed deadline.
Non-compliant entities must ensure compliance with requirements and pay fines within 15 days of the date of this notice.
If the entities fail to do so, the exchanges will have to issue recall notices and at the same time send information to the other exchanges where the non-convertible securities or the commercial paper of the non-compliant entity are listed.
If the entity still does not comply, the exchange and other entities authorized to act as an e-book provider (EBP) will not allow the issuance of securities by that non-compliant entity on the EBP platform and will not authorize the subsequent listing of non-compliant securities. convertible securities or commercial paper.